Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date are an example of: Select one: A. a Level 2 input. B. a Level 3 input. C. a Level 4 input. D. a Level 1 input
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Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date are an example of:
a Level 2 input.
a Level 3 input.
a Level 4 input.
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- AASB 13 defines exit price as: Select one: A. The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. B. The amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction. C. The price that would be received to sell an asset or paid to transfer a liability. D. A transaction that assumes exposure to the market for a period before the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets or liabilities; it is not a forced transaction (e.g., a forced liquidation or distress sale).Fair Value Accounting and Valuation in 3 Steps: Asset or Liability Identification: The first step involves identifying the specific assets or liabilities that will be measured at fair value. This could include financial instruments, tangible assets, intangible assets, or other items on the balance sheet. Market-Based Valuation Techniques: Fair value is determined using market-based valuation techniques. This may involve assessing current market prices, recent transactions, or employing valuation models such as discounted cash flows, comparable sales, or option pricing models. Consistent Application and Disclosure: Fair value accounting requires consistent application of valuation methods across reporting periods. Additionally, transparency and disclosure are crucial, with companies providing detailed information about the inputs, assumptions, and methods used in fair value measurements. Objective Type Question: In fair value accounting, what is the primary purpose of…Following IFRS, which statement is false? Group of answer choices The revaluation surplus account is a specific account reported as an unrealized gain in the statement of comprehensive income. If the revaluation initially increases the long-term operating asset's carrying value, the firm records the difference between the carrying value and the fair value (the unrealized gain) in the revaluation surplus account. The revaluation surplus account is a specific account reported in other comprehensive income (OCI) in the statement of comprehensive income. If a long-term operating asset's fair value decreases in subsequent accounting periods, after an earlier write-up, the firm reduces the revaluation surplus if it exists.
- Under what cisrcumstances under PFRS 9 can an entity classify financial assets that meet the amortized cost criteria as at FVTPL? A. where the business model approach is adopted B. where the financial asset passes the contractual cash flow characteristics test C. where the instrument is held to maturity D. if doing so eliminates or reduces an accounting mismatchThe price that would be received to sell an asset or paid to transfer a liability in an orderly sale between market participants at the measurement date is termed ________. Select one alternative: fair value book value intangible value tangible value"To increase consistency and comparability in fair value measurements and related disclosures,this MFRS establishes a fair value hierarchy that categorises into three levels (see paragraphs76-90) the inputs to valuation techniques used to measure fair value. The fair value hierarchygives the highest priority to quoted prices (unadjusted) in active markets for identical assets orliabilities (Levell inputs) and the lowest priority to unobservable inputs (Level 3 inputs).(paragraph 72,Malaysian Financial Reporting Standard 13 as equivalent toIFRS 13 issued and amended by the IASB,including the effective and issuance dates)REQUIRED:Discuss the above paragraph within the context of fair value hierarchy focusing on Levell, 2and 3 inputs. Explain in details and provide one example for each input levels.
- What is meant by date alignment? Does it exist on the consolidated worksheet under the following methods, and if not, how is it created prior to elimination of the investment account under each of these methods? a. The simple equity method b. The sophisticated equity method c. The cost methodFair value is used to value which of the following balance sheet accounts? a. Prepaid expenses; patents; property, plant, and equipment b. Capital lease obligations, bonds payable c. Receivables net of allowance for doubtful accounts d. Debtsecurities available for sale, trading securitiesMatch the correct term with its definition. A. cost principle i. if uncertainty in a potential financial estimate, a company should err on the side of caution and report the most conservative amount B. full disclosure principle ii. also known as the historical cost principle, states that everything the company owns or controls (assets) must be recorded at their value at the date of acquisition C. separate iii. (also referred to as the matching principle) matches expenses with associated revenues in the period in which the revenues were generated. D. monetary iv. business must report any business activities that could affect what is reported on the financial statements E. conservatism v. system of using a monetary unit by which to value the transaction, such as the US dollar. F. revenue vi. period of time in which you performed the service or gave the customer the product is the period in which revenue is recognized. G. expense vii. business may only report activities on financial statements that are specifically related to company operations, not those activities that affect the owner personally.
- According to historical cost principle, the assets and liabilities should be reported (tick whichever apply)? a.At their market value b.At their cost of acquisition c.At their replacement value d.All of the aboveWhere are changes in fair value for available for sale securities reported? Group of answer choices as a prior period adjustment to retained earnings on the balance sheet as a component of accumulated other comprehensive income on the balance sheet as operating income or loss on the income statement as income or loss from peripheral activities on the income statementPlease describe how to account for market value and unrealized gains and losses for each of these investment categories: held-to-maturity, trading, and available-for-sale.